The proposed project will partly finance the investment in efficiency and capacity expansion of the glass production facilities at OJSC Vetropack Gostomel Glass Factory’s site in Gostomel.
The proposed project’s transition impact to the Ukrainian container glass industry is expected from:
(i) Demonstration effect is derived from improved energy efficiency by introducing new technology and replacing existing equipment;
(ii) Introducing greater competition and innovation to the sector via introducing new standards of technology. Innovation will also create competitive pressures on the sector with the other large manufacturers.
(iii) Enterprise restructuring: Under the Project new standards of corporate governance will be introduced such as unified group wide reporting and management information systems.
(iv) Contribution to market expansion: Through the interaction with other parts of the food chain, the project will assist the Company to provide the Ukrainian bottling industry with greater choice and better quality of food and beverage packaging on a consistent and stable basis, closer to what is available to consumers in the West.
Ukraine’s OJSC Vetropack Gostomel Glass Factory is among the largest glass container producer in Ukraine and was established in 1912 in the town of Gostomel, near Kiev and was privatised in 1993. In February 2006 a majority stake in the company was acquired by Swiss Vetropack Group.
Swiss Vetropack group manufactures markets and supplies container glass products and a range of related services to the food and beverage industry. It operates six production sites and 13 melting furnaces with a total aggregate capacity of more than 3.6 billion pieces per annum.
EBRD will provide a senior, secured loan of up to USD 68m in two phases, part of which will be syndicated to commercial banks under an A/B-loan structure.
The EBRD finance will be used for balance sheet restructuring, equipment procurement, capacity expansion and efficiency improvements.
Screened B/1. In the context of the first EBRD project with Gostomel an environmental audit and environmental analysis were undertaken. These were conducted by independent environmental consultants and resulted in a number of recommendations which were formalised in an environmental action plan. Key issues within the EAP included the remediation of a number of oil contaminated areas on-site, the reconstruction of the storm water drainage system and the reconstruction of storage facilities for a range of oils and hazardous materials. The completion of the EAP was verified during the recent monitoring visit undertaken by the Bank.
Looking forward, Vetropack will be required to operate the Gostomel facilities in compliance with applicable national and EU environment, health and safety requirements. Vetropack is recognised as a leader within the sector for the management of environmental issues and will apply its own comprehensive environmental policies and approaches to the facilities of Gostomel. As stated above, it is anticipated that the involvement of Vetropack will bring new standards in environmental management and energy efficiency and reductions in air emissions. Vetropack have confirmed that revamped and new furnaces will meet the same standards as the latest furnaces within the Vetropack group. Vetropack will provide the Bank with an annual report on environmental, health and safety issues.
Mr David Zak, CFO Vetropack
Tel: +41 1 863 31 31
Fax: +41 1 863 31 33
Mr. Dmytro Oliynyk
Tel: + 380 4497 31344
Fax: + 380 4497 31135
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